Export 101: What you should know before starting export business in Nigeria (part 2)

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If you missed the first part of this article, you can catch up by clicking this link to read up.

I have a product, and I need buyers

The Nigerian Export Promotion Council has an excellent website that allows you to do this.

This link, finding international buyers, gives you various directories to search with. For instance, this link global buyers links you with exporters and importers

Read: NEPC reveals why Nigerian exports fail in international market

What if I want to export to one nation

Let’s assume you have family or friends in a particular county and want to export to that nation. You can also use this link Target Country to find out what products that certain nation imports, that way, you can target your exports. E.g., in diagram 6, I have selected Belgium and ‘All Products”, and from the data, I can see that in 2020 Belgium will be a net importer of mineral fuels, oils and waxes (in yellow)

Read: NEPC lists 22 priority products that can earn Nigeria $30 billion in non-oil exports by 2025

Diagram 6 Trade Map

What about cost?

To calculate profitability, you also need to determine cost. So, assuming I am in Nigeria and want to export Cocoa Beans to Belgium. Using this link, the cost to export, I can see the applied tariffs. I have a screenshot in Diagram 7

Diagram 7: Aggregated Market Access

This link, Tariffs and Regulations, shows you the tariffs, import requirements and remedial actions you must take before exporting. I have a screenshot on Diagram 8. Note that you have to know your product’s actual technical name and code. If you do not, type the word and hit search, and it gives you options. Cocoa is 180100

Read: Nigeria’s agric export surges to highest on record, here are the top items

Diagram 8: Tariffs and Regulations

You will get a report like this in diagram 9

 

Diagram 9: Tariffs and Regulations Customs Tariffs

Pay special attention to Regulatory requirements. As you can see below, there are seven “measures” applied to Cocoa exports from Nigeria.

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However, what if you got access to mineral oils used in Anti-knock preparations for motor fuels based on tetraethyl-lead? The code is 381111, and want to export from Nigeria to China. What is the cost? According to Diagram 10, tariffs will cost you from 6.50%. Again, there are about ten regulatory measures. E.g. You cannot import any goods with the sign of “The Republic of China” to China. Again, do your research.

 

Diagrams 10; Customs 10

What is your selling price?

The next step for you is to plot this into an excel sheet to determine profitability

 

This link from Business WalesSchool allows you to determine selling price Export selling price calculator. You should input different prices and scenarios to evaluate if your export plan is profitable. Below in diagram 11 is a sample of an excel sheet.

Diagram 11. Export Pricing Sheet

Only after you do this should you then start your export journey.